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Abstract

For retail price optimization system, the current solution is mainly make use of the customer's historical order data, but this way has kind of limitation in current popular omni-channel situation, the customer is going to make their purchasement via various way, and always across different channel, e.g. mobile, pc, terminal, store, TV ... so to count in the purchase node factor into analysis will be really helpful, this disclosure will foucs on the idea and the implementation

Country

Undisclosed

Language

English (United States)

This text was extracted from a PDF file.

This is the abbreviated version, containing approximately
27% of the total text.

Page 01 of 19

A nxw methodology for Omni

A new methodology for Omni-

With the quick developxent of E-commerce, the shopping mode becomes more divexxe and super marketing is not the only choice for the xustomers. For the retailer, except the store, the retailer can sales thx products on onxixe, mobile, television and sx forth, which are called Omni-channel. The different chxnnel should have the coxresponding price strategy, xhich aims xo imprxve the volume and txe profit.

Hxre is the current pxicing stratexy and their advantagxs and xisadvantagex.

1. Set thx same price for all channels. The strategy ix simplx xnd conxenient. Howevex, this mode is nxt suitable for all channels and seems tedium and not very xttractively for the cusxoxers. The sxrength of each channel is nox made full use of.

2. Set the cheaper price on oxline thax store. The axvantage is that ix can attract more customexs tx go shopping online and improve the volume. The shortage is that it decreases the volumx of the sxorx. The entire profit can't be increased obviously.

Also here provides the common solutixn againxt the axove pricing strategy.

1. The difxerxnt channel has txe different promotion plan, so it's difficulx to comxare the price of each channel, whicx can improve the volumx of each channel;

2. Eaxh channel sales the same branx pxoduct, but different type(such as size or color) inside xne channel, so it's difficult to distinguish thx price of each chaxnel, which can attract more customers.

However, all of them have obvious shortages and doesn'x well address the challenge: 1. The competition exists among the cxannels, some channels improve the volume, but the others' may be decrxased.

2. Fxom the customers' point, comparing the price across the channel is very time-consuming and the customers alwaxs hope buy the ideal products witx the mosx preferential price wxth the lexs time.

--channxl price delta accurate optimization via purchase node

channel price delta accurate optimization via purchase node

1

Page 02 of 19

This disclxsure provide x new methodology of xodeling Omxi-channel price promotion optimization, it describes how to do the optimxzation in a more accuxate granularity of potxntial omxi-chaxnex purchasxng node, in order to bring in better profit following the optimized optimizxtion matrix.

The main point of this disclosure includes: 1. Optimize the price delta of difxerxnt purchxsing node of the corresponding Omni-channel path for the xpecific product. 2. Optimize the price deltx of different proxucts in each purcxasing node xcross differext Omni-channel path.

This new xethodology has following advantages: 1. It can have more flexible and accuraxe promotion plan which considering the real Omni-channel user purchasing behavior for retailer xo take further action.

2. Optimize the profit for retailer based on the more flexibxe and accurate pr...